Wednesday, May 17, 2017

Power
106 (KPWR) -- a part of Emmis Communications since the company bought
then-Magic 106 from Century Broadcasting in 1984 -- has been sold to
Meruelo Group for $82.75 million.

The
move takes Emmis out of a bitter ratings war with competitor Real 92.3,
and allows the company to focus its resources in cities where the
company owns more than once stations ... and can combine resources more
easily. But I agree with CEO Jeff Smulyan when he calls the sale
“bittersweet.” And the sale actually highlights a stark contrast in how
Emmis operates compared with its much larger rivals iHeart and Cumulus.

Emmis
is using the funds to pay down debt. Had the company not had debt, I
sincerely doubt it would have sold. The $80 million will pay off about
60 percent of its debt and leave the company with a solid footing.

Compare
that with iHeart and Cumulus, both of which own hundreds more stations
than Emmis’ remaining 18. The big boys owe billions -- with a b -- in
debt, which they continue to try to restructure instead of selling
properties to pay it down. Perhaps this is yet another reason to keep
radio groups small ... the executives know how to play grown-up and
handle their own finances.

"Power
106 has been part of the Emmis family for more than 32 years, so this
day is bittersweet, but I am confident that the station and our team are
in good hands," Smulyan told Billboard Magazine. "The Meruelo Group
will be great owners of this historic brand, and take it to even greater
heights."

Rumor
has it that as part of the deal Meruelo will keep the vast majority of
the current staff on board. For its part, Meruelo -- which also owns
KDAY (103.5 FM) and KWHY-TV Channel 22 and is diversified into numerous
other industries -- seems to have no plans for major changes anyway.

Still,
that Emmis -- the company that let me intern at Magic 106 and the early
months of Power 106, treating me well and teaching me much about the
industry itself as well as giving me the chance to work directly with
numerous true professionals both in front and behind the microphone --
will always be a special company to me, and I hope that they consider a
return to Los Angeles when iHeart and Cumulus go bust.

Short Takes

I
have to pull out my Carver TX-11B tuner out of the attic: rumor has it
that KFI is indeed broadcasting a full audio bandwidth (translation:
good-sounding analog audio), even though radios that can play
full-bandwidth AM are few and far between ...

I
happened to stop by a local Radio Shack store the other day, just a few
days after the store put up signs announcing that it was closing. Kind
of sad and ironic: not one radio in the store. I think I know part of
the company’s problems ...

Oldies
are here to stay on K-SURF (1260 AM), says owner Saul Levine.
Unfortunately it appears that there will be no DJs on the station, a
change of heart for Levine. The reason: the songs appear to be selling
themselves and listeners are digging the sound. Still it would be nice
to hear some announcers who could tie the songs together and add some
more reasons to listen. Johnny Hayes comes to mind ...

Speaking of
oldies and K-SURF: notice how even a station that barely covers metro
Los Angeles can still attract an audience playing music instead of the
typical fare found on the dial? A 0.4 share is pretty impressive for a
station that barely makes it above the static where I live. Can I say “I
told you so?” I will anyway; imagine what could be done with a real
signal like 570, 710 or even 790 ...

I
read it on a Facebook meme so it must be true: Congratulations to the
busiest man in media, Ryan Seacrest, for being chosen as the next
Director of the FBI ...